Dollar Drops to R$4.063 and Closes at Lowest Level in 40 days

RIO DE JANEIRO, BRAZIL – On a day of optimism in the financial market, the US currency closed at its lowest level in over a month – the commercial dollar closed out Monday, December 16th, at R$4.063, with a drop of R$0.045 (-1.1 percent).

The currency is at its lowest since November 5th, when it was sold at R$3.993.

The currency traded low throughout the session. The dollar accumulated a drop of 4.18 percent in December.

In the stock market, the day was marked by profit taking, when investors sell securities to pocket gains. After starting the day higher and exceeding 113,000 points, the B3 Ibovespa index, the former São Paulo Stock Exchange, reversed the trend in the late afternoon and closed at 111,896 points, with a 0.59 percent drop.

The last few days have been marked by gains in the financial market after the rating agency Standard & Poor’s announced the rise in the outlook for the Brazilian public debt rating from stable to positive.

The decision suggests that the agency could raise Brazil’s sovereign credit rating over the next two years if the country pursues its reform and public spending reduction agenda.

The closing of the first stage of the trade agreement between the United States and China also contributed to optimism regarding emerging economies, such as Brazil.

Source: Agência Brasil